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Has United Parcel Service (UPS) Outpaced Other Transportation Stocks This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. United Parcel Service (UPS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of UPS and the rest of the Transportation group's stocks.

United Parcel Service is a member of our Transportation group, which includes 142 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. UPS is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for UPS's full-year earnings has moved 17.11% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, UPS has returned 27.07% so far this year. Meanwhile, the Transportation sector has returned an average of 8.88% on a year-to-date basis. This means that United Parcel Service is outperforming the sector as a whole this year.

Looking more specifically, UPS belongs to the Transportation - Air Freight and Cargo industry, a group that includes 4 individual stocks and currently sits at #27 in the Zacks Industry Rank. Stocks in this group have gained about 24.10% so far this year, so UPS is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Transportation stocks should continue to pay close attention to UPS as it looks to continue its solid performance.


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